The program will train individuals in the economics of mental health. Support of 10 pre-doctoral trainees is requested. The current demand for well-trained health economists is high and growing. Health economists with concentrations in mental health are attractive to government, universities and private research organizations. Many of the most pressing issues in mental health policy lend themselves to contributions from economic analysis. The proposed training program seeks to provide trainees with: (1) strong skills in microeconomic theory and econometrics; (2) a solid knowledge base regarding the nature of mental disorders and the structure of the services system; and (3) a set of structured research experiences in mental health services research. The Johns Hopkins- Maryland Center for Research on Services for Severe Mental Illness, and the Johns Hopkins Center for Youth Mental Health Services Research provide a rich research environment. The academic program at Johns Hopkins draws upon a rigorous curriculum for the Ph.D. in health economics, nationally recognized Departments of Psychiatry and Mental Hygiene, strong ties to the Department of Psychiatry at the University of Maryland, strong working relationships with relevant Maryland agencies, and a new commitment to applied microeconomics in the Department of Economics. The core faculty are experienced in training and research and have established an excellent track record for trainee productivity in mental health services research and related research areas during the history of the training program.